Christmas spending necessitates debt management

Internet bank Egg has suggested that many British families need debt management this Christmas season due to overspending on children’s entertainment.

The bank made the suggestion after studies have shown that an average UK family would spend nearly £40 a day on keeping their kids occupied during Christmas – that could cause a serious financial strain on the budget to reach at least £540 over the two week break.

Interestingly, a great majority of 77 percent of parents polled by the bank admitted they would spend more than they could afford this Christmas.

This overspending could easily be avoided if people would seek debt management help, Egg spokesperson Vanessa Wood said.

Wood said, “Christmas is the most expensive time of the year for a lot of families but being smart about how you spend money can really help spread the cost of Christmas.”

To help UK consumers cope with the spiralling Christmas cost, the Toy Retailers Association has released a Dream Toys list, which only contains toys priced under £50.  The group said the list would help struggling parents to entertain their children without breaking the bank.

Last week, LoveMoney.com, said that consumers who rely on their store cards to spend during the Christmas holidays could find themselves in a significant amount of debt. The web site said that the cards, which often promise buyers benefits, come with strings attached, in the form of extortionate APRs.

Consumers struggling to repay their bills could find they need a debt management plan to cope with increasing levels of store card debt, particularly if they take out payment protection insurance on the cards, something the personal finance website branded as significantly overpriced.